Posts Tagged ‘Finance’

In order to comply with FDIC Part 370, covered institutions will have to implement a change program that encompasses the people, processes, and technology necessary to identify data sources and remediate data. For the largest and most complex depository institutions, account and customer data can be spread across dozens or even hundreds of backend systems. […]

Currently, the FDIC estimates that the 38 largest banks will fall under the rule’s provisions. Those banks have until April 1, 2020 to either be in compliance or have secured any relevant exceptions or exemptions. In order to be in compliance, covered institutions will have to implement a change program that encompasses the people, processes, […]

Part 370 is broken into 10 parts, as follows. 370.1 Purpose and scope The purpose of Part 370 is to improve the FDIC’s ability to fulfill its two mandates related to paying deposit insurance: Pay deposit insurance as soon as possible after the failure of a covered bank; and Resolve a covered institution with the […]

The financial crisis of 2008 brought several institutional collapses that were unanticipated in both scale and speed. While existing processes were deemed suitable to handle smaller or slower bank failures, the FDIC realized that it might struggle to pay depositors if a complicated bank failed rapidly. The FDIC is required by law to pay depositors […]

If you have ever stepped into the offices of a finance or accounting team, you may notice piles of invoices and documents concerning payments. Even though enterprise resource planning (ERP) and software systems do close the gap for month-end and year-end close, there remain inefficiencies resulting in delayed payments and incorrect payment amounts. Invoice processing […]

The Recordkeeping for Timely Deposit Insurance Determination rule, more commonly referred to as 12 CFR Part 370, or simply Part 370, became effective April 1, 2017. The rule details new recordkeeping and reporting requirements for the largest depository institutions that help ensure prompt payments to consumers in the event of institutional failures. Part 370 generally […]

Leveraging blockchain technology requires access to a blockchain platform. Public or permissionless blockchain platforms, however, have limitations for financial enterprise transactions, creating privacy concerns by enabling everybody on the blockchain to have visibility of all transactions. Additionally, the sheer vastness of potential transactions requires a substantial amount of computational power, which can slow transaction processing […]

Current transaction processing requires trusted intermediaries to store assets, verify the legitimacy and solvency of each party in a transaction, validate each asset being transacted, complete the transfer of ownership of the asset, and record the transaction in a centralized ledger. Once a transaction is initiated, the initiating party has no visibility of each stage […]

Adjusting to the new regulatory environment Recent problems with bank employees opening unauthorized accounts for consumers have focused the regulatory spotlight on sales practices in the industry. The fallout from sales practices problems has been spectacular and well-publicized: Hundreds of millions of dollars in fines and legal costs Destruction of shareholder value Brand and reputational […]

In simplest terms, blockchain is a technology that enables value to be transferred using only software; that is, without the need for trusted intermediaries. It is a record-keeping system where transactions are executed, validated, and recorded publicly. Let’s break down blockchain: 1. Blockchain is the technology behind bitcoin, the electronic currency. It is not the […]

One of the most fascinating effects of driverless and connected car technology is its financial impact on the customer-facing side of the automotive industry. According to Chris Ballinger, senior vice president and chief financial officer of Toyota Financial Services, approximately 87% of Americans who buy a new car finance it. In the U.S., 30-50% of […]

The Recordkeeping for Timely Deposit Insurance Determination rule, more commonly referred to as 12 CFR Part 370, or simply Part 370, became effective April 1, 2017. The rule details new recordkeeping and reporting requirements for the largest depository institutions that help ensure prompt payments to consumers in the event of institutional failures. Part 370 generally […]